ECCO Sko A/S

ECCO Modern Slavery Statement 2017 This statement describes the steps ECCO has taken during 2017 to prevent modern slavery and human trafficking from taking place in ECCO’s business and supply chains. The statement responds to the UK Modern Slavery Act 2015 and has been approved by ECCO’s Group Managing Board. INTRODUCTION ECCO is aware that the issue of forced labour and human trafficking, in particular where work is conducted by migrant workers or other vulnerable workers, occurs across the world. Such abusive working conditions are unacceptable and ECCO welcomes the growing body of legislation that focuses on preventing modern slavery from occurring in the business and supply chains of companies. ECCO’S BUSINESS AND SUPPLY CHAINS ECCO is producing high-quality leather, footwear and accessories. ECCO is unique in the way that it owns and controls the vast majority of its leather and shoemaking process, from the tanning of hides, the production of shoes, to the sale of products to consumers. Although the majority of ECCO’s tanning and shoe production is conducted in-house, ECCO does rely on suppliers to provide the company with services and materials, such as uppers, laces, inlay soles, machines, chemicals, finished products, and components used in connection with the manufacturing of ECCO products. Due to ECCO’s business model, the ‘tiers’ of the supply chain look different to those of many of its competitors and peers. ‘Tier 1’ are business units that manufacture the finished shoes or leather goods sold to the end-consumer. This mainly comprises of ECCO shoe factories (Indonesia, China, Thailand, Slovakia, and Portugal). For ECCO Accessories, this would include bags, wallets, belts and other small leather goods. ECCO’s ‘tier 2’ are business units that manufactures visible materials or components to tier 1. This mainly comprises of uppers from ECCO Vietnam, leather from ECCO tanneries (Indonesia, China, Thailand and Netherlands). In addition to these managed business units, we also source laces, logos, zippers and shoe boxes within tier 2. ECCO also owns and operates some facilities at tier 3. ‘Tier 3’ are business units that is a sub-supplier to tier 2. This includes ECCO’s beamhouse in the Netherlands. Further, it could include dying facilities, chemicals, latex and foam for sock lining. To learn more about ECCO and how its shoes are made, please visit: https://group.ecco.com/en/about-us ECCO´S POLICIES ECCO’s Code of Conduct, http://e.cco.to/coc, which is signed by and overseen by the Group Managing Board, affirms ECCO’s commitment to respect internationally recognised human rights. Day-to-day implementation of the Code is the responsibility of the Group Corporate Responsibility department. The Code makes it clear that ECCO must provide employees with a workplace free of harassment and abuse, and it condemns any form of forced labour. The Code not only applies to all ECCO employees and business units, but also to all external suppliers and other business partners. EMBEDDING ECCO´S POLICY Training helps ECCO embed its policy throughout the business. ECCO provides training to all new employees on its Code, with a more in-depth training provided to employees with particular responsibilities that require a more in-depth knowledge of issues relating to modern slavery. ECCO knows that the risks are constantly evolving as the criminal activity of modern slavery becomes more sophisticated. ECCO continuously updates training materials to incorporate up-to-date information on the trends in modern slavery as well as specific case studies describing the red flags for modern slavery. VALUES HERITAGE PASSION INNOVATION CARE EXCELLENCE HIGH QUALITY FOOTWEAR, LEATHER & ACCESSORIES NET REVENUE 2017 EUR 1,276m OPERATES IN 90 COUNTRIES MARKETS CHINA USA RUSSIA GERMANY SWEDEN